Vendor management seems to have grown beyond traditional parameters and now may include activities once dedicated to the accounting department. These tasks can include everything from document imaging, invoice processing and workflow management.
Corporate procurement functions and government regulations require that vendor master files be complete and accurate with high levels of transparency and efficient management of vendor activities. To better streamline all of the transactional processes in the purchase-to-pay process and provide the level of management demanded, more organizations are looking to accounts payable automation software solutions.
Let’s take a look at 3 of the biggest challenges organizations are facing with vendor management and how AP automation solutions can help:
- Finding the right solution to effectively handle the new tasks required in the vendor management function – Many times organizations become overwhelmed with all of the overlapping requirements of various departments and attempt to build software to respond to those needs. This can become very costly and a labored effort that doesn’t yield the results that were hoped for. Luckily there are automation solutions available that can handle all parts of the purchase-to-pay process, including document imaging and data extraction, creation of workflows and ERP integration. These solutions are usually much less costly to incorporate than home grown models and can be customized to provide the solution that best fits the needs of the organization.
- Vendor Onboarding and Compliance Issues Across Departments – Many times various departments play a role in vendor onboarding, and compliance requirements can vary based on location or the product/service being purchased. There are other corporate compliance requirements that need to be addressed as well, such as sales and use tax certifications. Vendor onboarding typically falls within the role of procurement but if information is inaccurate or not fully available to the accounting department, when an invoice arrives, early pay discounts can be missed. Information may be difficult to access or become lost in the shuffle. These issues can be avoided with the implementation of a user friendly AP automation solution which allows for increased transparency and streamlined workflows.
- Securing and Housing Required Documents – Many times it can be a struggle to be sure all required documentation is acquired from a vendor, such as tax ID verification and insurance policy specifics. Documentation is important and necessitates maintenance to be sure everything stays up-to-date. It can be difficult to obtain all of the necessary paperwork from vendors, so once it is in hand, it’s good practice to house this information in a reliable repository that is easily accessible to any authorized user. AP automation solutions streamline the process right from the start with document imaging, and provide repositories for storage.
Don’t let your vendor management become overwhelming and disorganized. Implement an AP automation system to streamline the process and house up-to-date information that meets compliance regulations and provides transparency across all departments.
Berkheimer OneSource (BerkOne) offers AP|Connected which includes a suite of customizable AP automation solutions that can streamline your entire purchase-to-pay process.